District Metals (DMX.V) has released the initial results of its first exploration program at the Tomtebo project in Sweden. This was a first pass exploration program focusing on mapping, prospecting and sampling at and around the past-producing Tomtebo mine, while the company also completed an aerial survey (where we expect to see results in the next few weeks).
The sampling program in the open pits at Tomtebo encountered strongly altered rocks while the team of field geologists was able to trace the outcrops and the extension of the mineralization for over 600 meters towards the south and southwest of the Tomtebo mine. And although this sampling program focused on just one direction (south-southeast), this doesn’t mean the other areas around the Tomtebo mine aren’t worth following up on, but the overburden makes it more difficult (read: virtually impossible) to complete a more detailed mapping program. The aerial survey, however, should be able to provide more details on what may or may not be hiding underneath the surface.
Credit where credit is due, District Metals always does a great job in providing detailed information, and you can read the entire detailed press release HERE for more background information. Also keep in mind today, October 6th, the shares that were issued as part of the C$0.12 placement in June are coming out of lock-up. Considering this was a relatively small straight share placement with just 54 placees (including a bunch of insiders), there will be no ‘warrant clippers’. We may see a tiny bit of pressure on the share price as the stock has tripled from the placement price but there appears to be a healthy appetite in the market for District Metals as the share price hasn’t dropped below C$0.36 during the entire month of September. With a market cap of less than C$25M, District Metals remains one of the more exciting polymetallic exploration stories out there, and we are already looking forward to the 2021 drill program in Sweden.
Disclosure: The author has a long position in District Metals. District Metals is a sponsor of the website.